Long term reader here but first time poster. I will try give all relevant info regarding my question in the hope of giving any responder an accurate picture of my situation.
Own a house worth 155k
29 years left on mortgage term
Balance on Mortgage ~98k
Mortgage SVR of 3.99%
20k cash in Savings
Ok, so as per title, I am contemplating either of the two options. Putting 10k of my savings away for a rainy day fund would leave me with 10k. In one years time I could easily manage to have another 10k saved up. Terraced houses worth 70-80k in my town centre command a rent of around €650-€700 a month.
If I used my 20k and borrowed another 50-60k, would the small mortgage repayments vs good rental rate be a better choice than using my money to knock years of my existing mortgage.
Its in the nitty gritty of the cost of buying a house initially, plus all the deductions from the rental income such as tax, maintenance, insurance, LPT etc (that comes with being a landlord) that has muddied the water for me. Would rent of €650 cover the new mortgage plus all costs and some, or is it better to take the easy (and safe) option of paying down mortgage?
Phew.
Own a house worth 155k
29 years left on mortgage term
Balance on Mortgage ~98k
Mortgage SVR of 3.99%
20k cash in Savings
Ok, so as per title, I am contemplating either of the two options. Putting 10k of my savings away for a rainy day fund would leave me with 10k. In one years time I could easily manage to have another 10k saved up. Terraced houses worth 70-80k in my town centre command a rent of around €650-€700 a month.
If I used my 20k and borrowed another 50-60k, would the small mortgage repayments vs good rental rate be a better choice than using my money to knock years of my existing mortgage.
Its in the nitty gritty of the cost of buying a house initially, plus all the deductions from the rental income such as tax, maintenance, insurance, LPT etc (that comes with being a landlord) that has muddied the water for me. Would rent of €650 cover the new mortgage plus all costs and some, or is it better to take the easy (and safe) option of paying down mortgage?
Phew.